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    how much would financing a car hurt my credit score and can it be fixed.

    I want to buy a car and am considering financing but would like to know what the effects would be to my credit score and if and how long it would to take to recover.

    9 Comments

    If u get accepted it won't hurt in fact it will be good
    For future as any future lenders will be able to see u took car loan n paid it back.
    If u get refused that would have an inverse effect

    If you pass credit check and maintain timely payments, it will potentially enhance your credit scrore. Only immediate "downside" is that it would reduce your remaining affordable borrowing.

    won't hurt if u make ALL payments on time, in fact could actually help!!

    As others have said financing a car itself wouldn't harm your credit score unless you missed payments or stopped paying entirely. In the end it will actually be a good thing as it will end up being a large loan that you paid off regularly.

    Although if you apply for finance and get declined then I believe that will stay on your credit file for 1 year. That means that if you applied for finance again with another company they will see that you were already rejected by someone else. That may or may not have an impact on their decision to loan you the money as their requirements may be different.

    zhavybez

    I want to buy a car and am considering financing but would like to … I want to buy a car and am considering financing but would like to know what the effects would be to my credit score and if and how long it would to take to recover.



    The only major issue you might have is if you were about to buy a house. The mortgage lender will look at your monthly commitments and decide your 'affordability'. If it's a sizeable loan over a protracted period of time, then this will change your affordability level and may thus affect how much the bank is willing to offer you.

    Original Poster

    I have the majority of the money to pay for the car, but would like to not rely on my parents for the rest. So by the end of the finance I would have worked enough to pay for the remainder of the payments without missing any. Do you guys think I should do it

    contrary to popular belief, whether you are accepted or not doesnt show on a credit report. it shows a search, thats all. some lenders could obviously try and put the pieces together to see if a new account opened around the same time, but most automated systems are unlikely to be that intelligent.

    lenders dont even see who searched your report.

    but yes, if you make timely payments it should improve your score in the medium to long term. consider if you need to lend any other monies in the near future as your debt to income ratio will increase, reducing the liklihood of futher credit being offered.

    zhavybez

    I have the majority of the money to pay for the car, but would like to … I have the majority of the money to pay for the car, but would like to not rely on my parents for the rest. So by the end of the finance I would have worked enough to pay for the remainder of the payments without missing any. Do you guys think I should do it



    ​you'd be best using the majority as deposit and financing as little as possible, rather than finance the whole amount.

    if you cant afford the payments once you have paid the deposit then you shouldnt get car finance.

    If you make all the payments is a positive on your credit score in the long run.
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